Unlock Energy Savings: The Power of Data-Driven Engagement and Education

Originally published on AESP.org

Are you confident your customers know about valuable programs—like energy audits and rebates—that could help them save energy and money while planning home improvement projects? Unless they work for a utility themselves, the average customer is likely unaware of these opportunities. Engaging and educating utility customers on beneficial programs is an ongoing challenge for utilities that is becoming more and more difficult. 

Utilities could be running more cost-effective programs and building stronger, long-lasting customer relationships if these programs were known. Instead, the ACEEE’s 2023 Utility Energy Efficiency Scorecard reveals that energy savings among evaluated utilities have decreased by over 5% since 2020. Utility spending on efficiency programs has also declined and popular lighting programs have been phased out as LEDs have taken over the market. 

The bright side is that utility investment in income-qualified programs is on the rise, growing by more than 20% according to the ACEEE Scorecard. Digital customer interactions are also growing with services like online bill-pay, web-based customer portals, and sophisticated utility CRM and CIS systems. These digital services are generating a wealth of customer data that sets the stage for new gains in digital customer engagement, education, and customer service. 

Utilize Data and AI for Improved Engagement

Many utilities are increasingly using data and AI to improve the customer experience and help them identify new opportunities to save. With AI, utilities can model building performance, recommend behavioral changes and structural retrofits, forecast energy consumption, and more. Data- and AI-driven advancements go beyond traditional digital engagement strategies by offering customers personalized insights like those they would otherwise access through in-home energy audits and call centers.  

One example of this is Brillion’s new Home Energy Report (HER) Program we recently piloted with a natural gas utility in the Pacific Northwest. HER programs typically provide customers with insights based on historical consumption and comparisons with last-year’s usage or the usage of an efficient “neighbor.” Our data-rich approach leverages more data and provides customers with personalized results just like an in-home audit. But it’s faster, cheaper, and easier to integrate into existing customer communication campaigns than the traditional in-home audit. The reports send proactive tips to reduce energy usage with minimal cost investment and encourage customers to take action and save. And evidence shows this method works.  

Highlights from our 12-month pilot include: 

• 6% energy reduction across low-consumption / low-income users (highest absolute savings of any population segment)
• 90% peak open rate for HERs sent via email
• 5X digital performance advantage over paper reports

These results indicate how personalized engagement and education leads to behavior changes and it also shows us not all customers respond the same way. Low-consumption users in small homes and harder to reach populations saw the most energy savings. On the other hand, high-consumption users didn’t respond as well to the same message. Utilities need to understand not all customers consume energy the same way (even though their consumption might be similar) and that appropriately segmented and targeted messages are necessary to drive the desired outcomes.   

In addition to HERs, other outbound communications like high bill alerts, annual bill explanations, and seasonal updates take engagement a step further. These communications directly correlate to higher energy savings in segments of the population that interact with utility messages the most. For example, data from a utility customer in the Southwest showed that video bill communications can reduce bill volatility, and one customer segment who watched at least five videos saw annual energy savings of over 5%.  

The Power of Data-Driven Customer Engagement

There is clear evidence that data-driven customer engagement drives results. Customers who engage with their utility and understand their energy use are more likely to make a change. However, segmentation is necessary because all people respond differently and motivations for change can vary dramatically from home to home. Great segmentation humanizes energy by allowing utilities to better understand their customers. It helps different customer demographics understand their energy use through communications that are tailored to their home size, consumption patterns and more. 

There are numerous benefits to leveraging customer data. Increased engagement and education help customers understand their energy use, reduce bill volatility, increase CSAT, and drive energy savings, to name a few. For utilities to succeed, technical support is essential for implementing data-driven engagement strategies. Utilities need to focus on tracking and tagging data to better understand their customers’ needs. Data-driven engagement and education can revolutionize customer engagement, drive more savings, and create long-lasting behavior changes. Brillion is committed to helping utilities use data-driven insights to help their customers make informed decisions that lead to positive changes. 

If your utility wants to see real behavior change and energy savings, contact Brillion to get started.